Study Shows Impact of E15

Very little change in prices seen by increasing blends.

Published on: Jun 2, 2009

According to a study released by the Food and Agricultural Policy Research Institute increasing the amount of ethanol blended into the gasoline supply to 15% would have a minimal impact on ethanol, corn and food prices. In fact, the group based at the University of Missouri-Columbia, says U.S. corn and fuel ethanol prices would rise by just four cents each if the blend rate is increased. As for feed costs for livestock and dairy producers, the study expects an increase of just 0.7%. The study also shows the higher rate would help to increase farm income, cut crop subsidies by $20 million a year and provide value to the nation's economy.

 

At the request of five U.S. lawmakers FAPRI examined the impacts of other scenarios involving E15 and E10 including ending U.S. support for corn-based ethanol while retaining the federal mandate to use advanced biofuels. The full report is available at www.fapri.missouri.edu/.

 

Growth Energy CEO Tom Buis says the study further reinforces that America's farmers can produce enough corn to meet food and fuel needs without using additional land or disrupting the global food supply.